From the Allison Ziefert Real Estate Group
In real estate news, the “spring” market that arrived late this year in mid-April has not slowed down yet. Normally, in late July we are getting ready for a quieter August as we and our buyers and sellers head off on vacation. On crazy days at the end of our busy season I repeat this mantra to myself and my team: “August is coming.” But this year, we are not expecting that summer will slow down. With travel and camp plans cancelled, people’s minds are still focused on real estate.
The flow of buyers looking to move to the suburbs is continuing and there simply are not enough homes for them to buy, with only 2 months supply of inventory in both towns reflecting the strong seller’s market. In Maplewood, there were 87 active units on the market back in June of 2019 v. only 45 in June of 2020. In S. Orange, there were 87 active units on the market back in June of 2019 v. only 36 in June of 2020. The number of under contract units in both towns was about the same year over year for June.
The result of this low supply and high level of activity is resulting in many homes receiving offers substantially (I mean 20-25% more in some cases) over list price. We should see some very high sales in our July and August data. For now, the June closed sales data shows Maplewood average sale price dropped by .71%YTD to $593,000 and S. Orange average sale price dropped by 1.78% YTD over last year to $641,830. On average, most homes were selling 1-2% over asking. Our team’s listings are averaging more than 8% over list price.
There have been many articles written about the exodus of city buyers to the suburbs. Here is one from this week’s New York Times Real Estate Section that I would like to share with you. It notes a few interesting trends that we have been seeing here on the ground. To a certain extent, buyers are overlooking dated finishes that they would previously have been finicky about. I am also seeing buyers overlook oddly configured yards and locational issues that they would have balked at a few months ago.
The profile of our sellers has been a bit unexpected in that people aren’t only moving for the usual reasons. We are seeing many young local families choosing to relocate for work or for lifestyle reasons. Companies are allowing them to work remotely from anywhere so they are opting to move closer to family or to a location that they have always dreamed of living in. This month alone we have had local clients depart to California, Hawaii and upstate NY.
Here are our reports for last month, showing closed sales and year-over -year comparisons of various key statistics for both towns. If you have questions about what is happening out there in the market I am always happy to help.
June 2020 Real Estate Market Reports for Maplewood:
June 2020 Real Estate Market Reports for South Orange:
If you have real estate on your mind and have been considering if a move is in your future or just have questions about the market, let’s talk confidentially. We can help you seamlessly and safely prepare your home to get top dollar in today’s market. Reach out to me through email at: [email protected].
The Allison Ziefert Real Estate Group is a top producing real estate team based at Compass in Short Hills, NJ. We are local market experts, specializing in real estate and homes in Maplewood, South Orange, Millburn/Short Hills, Montclair, West Orange, NJ and the surrounding towns. We are driven by earning great testimonials and referral business from happy clients. You can read our testimonials at www.azhomesnj.com/testimonials.